2018: A opportunity for Security Tokens? #IntroduceSecuritytokens

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Hi Steemians!
Today i read a very interesting article about this Blockchain innovation. I want to share it whit you!! Hope enjoy it.

Blockchain is one of the fastest growing ideas in recent history, and
its revolutionary decentralized model is being appropriated by
industries far and wide. Part of its popularity is derived from
cryptocurrency, which is now almost a decade old. Bitcoin was the
seminal cryptocurrency back when it was just that: a currency.
However, the term ‘cryptocurrency’ is now somewhat dated. It used to
describe digital fiat money alternatives like bitcoin, Litecoin, and
Ripple, but is now a catch-all phrase that covers literally any ‘coin’
that is transferrable via blockchain.

Part of this shift is due to the waning novelty of coins that mimic
fiat money. The market now has so many other choices delivering
bitcoin’s capabilities and more, that it has come up with new terms to
help illustrate the differences between them all. The rise of ICOs
means that there are now thousands of different cryptocurrencies out
there, with ICO-generated coins commonly referred to as ‘tokens’. This
year will likely signal the rise of one special kind of token, called
a security token, which provides one of the most encouraging cases for
blockchain technology yet.

Moving in a New Direction

Utility is where the market headed after bitcoin became old news.
The aptly named ‘utility tokens’ are the
result of an ICO whereby users of a blockchain platform pay with the
tokens sold during the ICO, or that they earn for providing some other
relevant input. Golem is a pertinent example, allowing users to lend
their own PC’s power to the network which collectively employs it to
run a remote supercomputer. Users earn GNT for connecting to the
network, but they can also buy them via an exchange. Basic Attention
Token is similar, with users rewarded in BAT for using the BRAVE
browser and viewing ads.

However, these tokens amount to little more than the loyalty rewards
points given by credit cards, in some cases, and barely need to be
denominated in token form for the platform in question to work.
Attaching value to them is an exercise in ambiguity as the market
pretends that the underlying business’s value proposition and market
(potential or real) make its tokens more valuable. This often isn’t
the case. Projects like the ones mentioned above are gaining new
partners and users constantly, and yet their tokens still move in
relation to bitcoin and the market at large. Participants with utility
tokens are therefore purchasers of a service, and not investors in it.
The result of their contribution to an unregulated crowdsale is simply
the ability to use the service itself, and nothing more.

A better balance is found in security tokens, which are essentially
digital, liquid contracts for fractions of any asset that already has
value, like a house, a car, a painting, or equity in a company.
Denominating fractional ownership of a real asset in tokens is an idea
that is naturally more structured and means investors can expect that
their ownership stake is preserved on the blockchain ledger.

Benefits of Security Tokens

Security tokens are a natural bridge
between the traditional finance sector and blockchain and benefit both
equally. This is because the assets divvied up via tokens already
exist in the traditional market—even the biggest markets like public
or private equity and real estate. Many blockchain projects now have
platforms that directly undercut the old ICO model by tokenizing
equity rights for pre-IPO companies.

A lack of regulation for utility tokens has meant that companies
raising capital can circumvent institutional finance alongside the
costs and accountability involved. However, with the cryptocurrency
market slipping this year and perpetually volatile, it has become
riskier to launch an ICO and expect conditions stable enough to run a
company. Many projects have taken to cashing out immediately to remain solvent.
This sinks the already weak argument that ICO participants
are “investors” in young companies and opens the door to new ideas
like that of The Elephant.

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